Firstly Gilo is not in East Jerusalem. It is a residential neighborhood in South Western Jerusalem not far from the Knesset building. Objecting to Israel building houses in Gilo is akin to objecting to Palestinians building in Ramallah. Gilo does not resemble outposts in the West Bank. It is an integral part of the Jerusalem municipality as recognized even by the late Yitzhak Rabin.
Secondly, Gilo is not an impediment to peace negotiations since everyone acknowledges that the negotiations will involve new borders. In his video message to the November 2000 Rabin Rally in Tel Aviv, President Obama urged Israel to pursue Rabin's legacy. It is therefore relevant to recall that in his last speech to the Knesset on October 5, 1995, Rabin said "The borders of the State of Israel, during the permanent solution, will be beyond the lines which existed before the Six Day War. We will not return to the 4 June 1967 lines."
Countering Bias and Misinformation mainly about the Arab-Israel conflict
November 22, 2009
The map shows the location of Gilo in the south west of Jerusalem not far from the Knesset and very close to the 1949 armistice line.